All posts tagged University of Michigan

Americans step up their spending after payday—no surprise—but it’s not because the cash is burning holes in their pockets, a new study found.

In a paper to be published Friday in Science, researchers found that close to half of increased spending in the days after Americans receive pay or benefit checks comes from recurring payments such as rent or mortgage bills. In contrast, spending on fast-food or coffee treats increased only modestly in the few days after Americans are paid.

The research helps explain a longstanding economic puzzle: Why do consumers with regular and predictable sources of income have so much volatility in their spending habits? Read More »

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